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disbursals and is unlikely to be there for
We are pleased to publish the 100th article by recovery work of those loans, s/he dis-
Prof. T R Shastri, a former banker based in Bengaluru. burses loans without much regard to vi-
ability. In fact, RBI has a master circular
His articles over the last ten years, published in to banks on how to extend banks’ con-
Indian Engineering Exports, covered a wide range of tribution in providing relief by resched-
areas – from banking reforms to export trade – uling of existing loans and sanctioning of
including areas as diverse as non-resident status, fresh loans in 12 circumstances including
industrial policy, and withholding tax. The core focus draught and flood. Ingenious managers
area of all the articles has always been to familiarise are able to accommodate the pressures
under one of these circumstances but are
banking practices and foreign exchange processes to likely to carry the resultant stress even
Prof. T R Shastri our members. We trust these published articles have during the next posting. Thus, in a typical
been of interest to our readers. village, the number of cattle financed by
a branch is likely to be much higher than
that in its command area.
Mobility with globalisation viewed as an unpleasant chore – much Bank managers who are posted to
The concept of a gig economy (i.e. a free like a trip to the dentist.’ He further re- branches in cities face different types of
market system in which temporary posi- cords that research by retail experts has challenges. They are expected to be ex-
tions are common and organisations con- even shown that high street shoppers perts in everything, from lathe machines
tract with independent workers for short- actually pick up their pace near banks, to aircraft, while appraising the propos-
term engagements) is gradually becoming making branches toxic for neighbouring als, understand the psyche while dealing
a norm and acceptable. Hence the safety stores. This means, normal retail shops do with disparate colleagues and demand-
of a government-like job, a safety-net not wish a bank to be the neighbour. This ing customers, familiar with technology,
in a job, or a job for lifetime has lost its observation may not be valid in dense and be conversant with several dozens of
charm as an attractive feature even in In- Indian circumstances but it is true that bank products, processes and documen-
dia. Banking skills did not have fungibility customers prefer to go to banks only if it tation. Regulators, press, society at large,
in the job market earlier. However, now cannot be avoided. The customer dissat- auditors, and internal senior officials are
young bankers switch from one (private isfaction is corroborated by the number likely to be visiting, supervising or ‘mys-
or public sector) bank to another (private of complaints received by the Banking tery-shopping.’ The branch manager is
sector), to an NBFC, a technology compa- Ombudsman, which increased from 1.02 considered as the CEO of the branch, eu-
ny dealing with banks, or the ubiquitous lakh to 1.64 lakh between 2015-16 and phemistically, or at least for all the failures.
start-ups, or fintech companies. The ear- 2017-18.
lier attraction of possible overseas posting Rural posting is ‘mandatory’ in banking Stress factors in banking
is vanishing because banks are reducing service, since many do not wish to be so Most textbooks on banking are titled ‘law
their overseas presence rapidly for variety posted. When posted, they start counting and practice of banking,’ thus confirming
of reasons. These added to the downside the number of remaining days, every day. that law of banking is different from the
of the bank managers’ job. A typical bank manager in a rural area practice. A branch manager is expected
The perception of the various stake- would have arrived from another place, to follow the practice without violating
holders on the role of branch manager is leaving the family in a nearby city with the law, mostly a catch 22 situation. These
also not positive. A deputy governor of better educational facilities for his chil- create lot of pressure on the branch man-
RBI had called branch managers as lazy dren with no deep commitment to the agers. In most banks, transfer is mandato-
managers in 2003 for not lending but pre- current domicile. With the current farm ry for a branch manager once in at least
ferring to put money in G-Secs. They have loan waiver or rescheduling schemes, pro- three years, thus permanently depriving a
been branded as cabin managers (avoid- spective borrowers pressurise the branch steady and supporting family life. Several
ing the field) and generally disliked by managers to disburse the loan, assuring state governments have threatened action
customers. Christopher Alkan, financial that their ‘political party’ will ensure loan and even imprisoned branch managers
journalist based in Europe in his article waiver, when due for repayment. Anyway for not sanctioning loans, even if for valid
‘Visit a branch and take a pew,’ says that since the manager is under tremendous reasons. Such actions and loan waiver
‘Entering a bank branch has often been pressure to reach the target for such loan schemes have vitiated the credit culture, as

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